How Much Can You ACTUALLY Make As A Life Insurance Agent? (Truth Exposed)

So how much money can you actually make selling life insurance? You guys have probably seen vastly different estimates of that. You know, you've probably seen someone online saying like, I make $3 million a day selling life insurance. You may be seeing somebody saying, you know, I'm going homeless, I'm going broke from selling life insurance. What is an actual realistic expectation and what can you expect to make your first year? And how do you make, you know, 100k? How do you make 300k? How do you maybe even make seven figures? What does this all look like? Well, in this video, I'm going to break it down for you guys so you can see like what's actually possible and how you're going to be able to hit these different income markers and what it actually takes. Right? So if you guys don't know who I am, if we haven't met yet, and you guys are wondering, like, who on earth is this guy with a lamp and a protein shaker, you know, bottle in his background? Well, my name is Tim. I'm on a mission to build a $100 million life insurance agency. That's kind of like my day job, so to speak. And then in my free time, I, I make these videos for the life insurance sales channel to help new agents make six figures over the phone. Just kind of like giving out free advice, things that I've learned along the way. So I wish that I had known this when I first got started because I don't really think I had realistic expectations my first year. And it definitely cost me a lot of money. So without any further ado, let's go ahead and jump into it. So as you guys see in like big bold red lettering up here, I have the average income is $62,552. So what does that actually break out to per month? It breaks out to about 5200. I had it just on the calculator here. It's $5212 a month, right? Meaning the average agent, new and experienced is going to earn about $5,212 a month. Now, something that you guys do need to keep in, you know, keep account of whenever we're looking at this number or take into account is this is going to count people that are brand new. It's going to count people that make, you know, $10,000 a year because they do this part time. It's going to count people that fail out and it's also going to count people that are making multi seven figures. This is the average income, right? So it's average. You have the super low end, you have the super high end. But what is like a, what is a realistic metric for somebody that is serious coming into the industry? They're going to do this full time. They're not, you know, clowning around, they're taking this seriously. Well, that's kind of what I want to break down here because I think the average is a good number, but I don't think this is like the end all be all for what you can expect to make, right? So before I jump into like making 100k, making 300k, let's kind of talk about like what is a realistic thing to shoot for your first year. So what I've seen is whenever you first get into this business, there's a lot of things that you have to learn, right? So in your first year expecting to make, you know, a quarter of a million dollars or you know, 150k or 200k, a lot of times that can kind of be a stretch, right? Especially if you're like a brand new agent because there's just so many things that you have to learn and so many things that you have to master. Chargebacks, dealing with carriers, you know, all these different things you're going to have to learn. And I'm not saying it's impossible, but if you're getting into this industry and you're like, I have to make 100k to survive, you're probably going to have a pretty tough time because most people don't hit that, right? What I think a realistic expectation, right? And again, I'm always going to be conservative. You can make 100k in your first year if you're just like going all at it and you're like really hustling. But I think a realistic expectation, from what I've seen being around the industry for the last 3 1/2 years is not 70k per month, but about 70k per year, right? If, if a new agent earns about 70k per year, that is a pretty solid marker for their first year, right? From what I've seen, right. 70k a year that breaks out to, it's roughly like, you know, 6K a month, give or take. And if somebody's able to do that, they're going to be on pace for a very healthy insurance career. This is the second year they can start to push the boundary and go higher and higher. But the reason that I say 70 and not 100 is the first few months are kind of like the toughest part, the hardest to kind of like Get a hang of, right?

But most people get into this industry because they want to make, you know, 100k or they want to make multi six figures. So let's kind of break down like what it actually takes in order to hit this. So for this example guys, I'm going to use like our agency's free lead program just to kind of like take out the variable of lead cost because that's going to add too much complexity. So I'll kind of show you guys how this works. So let's look at how do we make 100k, right? How do we make six figures? So 100,000 is just 8 grand a month. If you do 8 times 12, it breaks out to roughly 100k. I'll show you guys real quick. 8,000 times 12 months is 96k. It's pretty much 100k, give or take, right? So how do we make a grand a month? This is the, this is the number or the metric that we need to look at. So if we know we need to make eight grand a month, the average policy we're going to sell is going to be about $1,000 annual premium, right? So average policy is going to be $1,000 annual premium. Okay? So the first thing we need to figure out is how much do we actually earn per policy? And let's say we're at 50% commission, right? So that's going to be $500 commission. Okay? So $500 in commission. Now what we also need to account for, which most new agents don't even know exists because nobody tells them, nobody really told me about this, is chargebacks, right? So chargebacks are also a major thing that you guys need to look out for. And nobody's really going to tell you this because it's, it makes the industry look bad. It's not a good part of the industry. It's very unattractive because what basically happens is you sell business and if the person doesn't pay their premium, the insurance company is going to take back some of this money. So if we're our average policy, right, thousand AP average, we make 500 commission. 50, 50 point comp on average. And if you guys are buying leads, it's going to be roughly this because you're going to spend about 50% of your money on leads. Roughly. So if we do min chargebacks, let's say that 20% of our business charges back, right? So this means, let's say for an even number, just to show you guys this percentage, if we sell 100 policies, 20 of them are going to charge back. 80 of them are going to stick. Okay? So if we make 500% commission per policy we sell, well, we need to figure out how many policies do we need to sell to make eight grand a month. How many do we need to sell a month to do that? So factoring in the chargebacks, I'm going to do it without the chargebacks first. And then we're going to kind of like work backwards a little bit. Let's just say, for example, let's say we sell 30 policies. So we write 30k in a month.

Okay? So we write $30,000 in a month for the sake of this example. So we're going to earn 500 per every thousand we write. So 15 or 30k, we would have roughly 15,000 in commission.

Before chargebacks if we're at 50 point comp, right? So 30k AP written.

Leaves us 15,000 in commission. Now we also have to subtract, let's say 20% of our business charges back. So we need to do 80% of 15,000. Right? So 0.8 times 15,000.

That means we're gonna be left with roughly $12,000 in commission, right? Which if we do 12 times 12.

We'Re actually going to be at 144,000. Right. So I always like to kind of like shoot a little higher, because when you first get started, your chargebacks might be 30%. They might even be 40%. You might struggle with this a little bit. And I always kind of like to shoot higher so you guys will have extra cushion on what to hit. So basically, in order for you guys to make about like 12, 12 grand a month in commission, which we want to have this extra cushion, just to be sure. You would want to write about 30k in a month, right? So the question becomes, how do you actually do this? How do you write 30k AP in a month as a brand new insurance agent? Because that roughly comes up to like one app per day. One app. I'm just going to write it instead of drawing because this is pretty abysmal. So this comes out to roughly one policy a day, right? So how do we write one policy a day? Well, that's basically the game, right? We need to have people to talk to, we need to be working really hard. We need to be, you know, realistically probably doing like 50 to 60 hours per week, because we have this learning curve as well that we have to factor in. In addition to us, like mastering and putting in the work, we also have to learn how to sell insurance. Right? So we Basically need to be shooting for about a policy a day in order to make six figures right now to kind of show you guys the different levels of income. If we want to make 300k, we just need to 3x the output, right? So if we want to make 300k instead of 1 app per day, we should shoot for 3 apps per day, right? And so on and so forth. If we want to make 200k, we should shoot for two apps per day, right? Because I always want to have that extra cushion because some of this business is going to charge back, different things are going to happen. Some of it will also be guaranteed issue, which I'll get paid less on than I will day one stuff. So we always want to overshoot here. So if you want to make between 100 and 300k, you can realistically do this writing on your own Pen. It's 100% doable. 300% is a lot harder. 100K is doable. It's a put. It's definitely a stretch your first year, but it's not impossible by any means. It's not possible. But you do really have to have your systems dialed in. You have to have a good trainer, good mentor, all of those things, right? So that's a hundred K to 300 K. Well, let's say you're like, you know, Tim, that sounds great, but I want to make more than 300k. A lot of people will tell you that, you know, yeah, you can 100% do that just outbound dialing all day. But what I've seen is the people that end up making like multi six figures long term, they either build a team or they build a book of business.

So some of you guys might have no idea what this means. You probably know what building a team is because, you know, that's basically recruiting. But basically in order to get past like 300k, just with the amount of time that it takes to sell, you realistically need to have a team or you need to have a book of business where you're working referrals and you're working upsells on your existing clients. And you basically have like this, this database of thousands of clients that you've sold that you're calling them back on, you know, their birthday, different things like that. And you're getting these upsell and referral opportunities. If you're just outbound dialing constantly and you're not focusing on like nurturing a client base, it becomes really, really hard to like break past 300k because of how much of a grind. It is, right? So in order to, to make 300k plus you're realistically going to need to have a team or a book of business now in order to make seven figures plus which, you know, some of you guys may be watching, you're like, you know, Tim, I'd be cool making 300k, I'd be cool making 100k. Everyone gets off the train at a different point. But I want to kind of like show you guys what it would actually take for you to make six figure seven figures. Because I've met a lot of the seven figures in the industry and the biggest thing that I've seen is every single one of these people is building a team, right? So they're building a team or training agents, right? Building a team or training agents. So realistically to get to the seven figure mark, doing it on your own, like trying to produce your way to that some people might tell you that you can do it but like it's not a sustainable long term thing. There's not many agents out there that are earning seven figures writing their own, just writing all of the business themselves. So if you have seven figure aspirations, what you need to kind of come into this industry looking at, Most of you guys probably don't have this, but what you need to come into the industry looking at is how can I learn this so that I can replicate myself and teach the skill, right? So if you guys have that seven figure, you know, ambition, that's kind of the mindset you need to come into it. So that, ladies and gentlemen, is how much you can realistically make selling insurance.

You can make six figures, you can make 300k, you can make seven figures. But this is what it actually takes. And this is what it actually takes to hit 6 figures, to hit 100k, how much you guys actually need to write in order to do that. So if you guys got value from this video, if this was insightful and eye opening for you, leave a, like, leave a comment letting me know. If you guys want to learn about our agency, we have a system that basically allows agents to do make six figures over the phone without spending any money on leads. Put together a presentation that explains how that works in the description down below. I will see you guys in the next one. Take care of.